Why you should plan to invest in electric vehicles

With the government announcing that no new petrol or diesel cars will be allowed to be sold post-2035, more and more individuals and businesses are switching to electric. As it stands, the government has set a target for 80% of new cars and 70% of new vans sold in Great Britain to be zero emissions by 2030, with the goal rising to 100% by 2035.

Electric Vehicles (EVs) are quickly becoming a viable substitute for your petrol or diesel equivalent. Once, being limited by distance on a single charge and lack of infrastructure, EVs are now becoming a positive environmental and financial investment for businesses and the general public.

The UK government is also aiming towards ‘building back greener’ and reaching its legally binding target of net zero emissions by 2050. Therefore, it can be said that now is the best time to start the switch to electric.

Why do electric vehicles make good financial sense?

EVs are cheaper to maintain, service and repair. Without an internal combustion engine, there is less likely to go wrong in the first place.

Advice for businesses looking to switch to electric vehicles is largely around ensuring the availability of charging stations. There are grants and funding available locally and nationwide to bridge the initial investment and reap the benefits long term.

• Fully funded EV charging Installation for businesses – businesses can get their EV chargers for free thanks to an initiative by Green Energy Switch. The offering is for the fully funded installation of a 7.3Kwh AC twin EV charger but other chargers are available. All businesses are subject to site visit to ensure they qualify but criteria are very broad.

• Workplace charging scheme – businesses, charities and the wider public sector can apply for grants of up to £350 per socket for installing up to 40 charging sockets for their employees and fleets.
• Plug-in vehicles grant – depending on which EV you buy, including initial cost and emissions, you can receive up to £3000. There are also grants for electric vans, taxis and bikes, each with its thresholds.

Depending on your facilities and usage, smart electric chargers could also save your business money by avoiding peak charging times. On-site generation, storage, and load management systems are other areas worth exploring that can also help you save and minimise the cost of upgrading your electricity connection.

Travel plans are important to help you manage transport for your business and encourage staff to make informed, sustainable choices regarding their travel arrangements, for more information see iiE’s Travel Plan advice.

Where is the market going?

Ford and Jaguar are two examples of large-scale car retailers who have pledged to go fully electric to meet net-zero goals. Jaguar are aiming to reinvent themselves as an all-electric luxury brand by 2025 and plans to achieve net-zero emissions across their supply chain, products, and operations by 2039. Meanwhile, Ford are investing billions to transition their entire vehicle lineup, including commercial vehicles and manufacturing operations in Europe, to 100% electric by 2035.

Another example of a large company taking significant action is British Gas, who are committed to having their entire fleet fully electric by 2025.

The changes in policy and legislation, alongside consumer and business-driven behavioural changes all point in the same direction – electric vehicles. In July 2021, the government set out the Transport Decarbonisation Plan (TDP) which details their efforts to decarbonise the entire transport system in the UK by 2050. And in February 2024, they set out the Plan for Drivers, which includes new measures to boost charging point numbers across the UK, making charging more convenient and encouraging drivers to make the switch.

Should you take the plunge with electric vehicles?

Corporate Social Responsibility

Being socially accountable is crucial in today’s working environment. More and more employees are looking to their management department to work towards high environmental and ethical standards. When combined with other environmental policies, introducing an EV fleet or company car is seen as a forward-thinking, environmentally-conscious business decision.

Workplace EV charging is particularly desirable; a 2023 Centrica survey found that 63% of employees consider workplace EV charging a significant factor when choosing an employer. This trend is particularly strong among younger workers (aged 18-34), who are more likely to expect their employers to take tangible actions towards sustainability. Such initiatives not only improve employee retention but also attracting valuable new candidates.

Alongside, employee retention, there is also scope to attract new customers. Businesses that integrate EV solutions as part of their Corporate Social Responsibility initiatives, gain a competitive advantage in the market. Proof of successful initiatives, such as a commitment and roll out of an EV fleet, is a tried-and-tested way for your business to show your commitment and stand out.

That being said, it is important to know the source of the electricity being provided to your EV. Having an electric car sourced from electricity generated by fossil fuels would be counter-intuitive. So, make sure you switch to a green energy supplier. Our sister organisation, Green Energy Switch offer comparisons of the best green energy tariffs on the market and can help find your business the best deal.

What are the costs involved, including savings?

1. Tax changes from 2024 and Benefit-in-Kind (BiK)

Fully electric cars will continue to benefit from low Company Car Tax (CCT) rates in 2024. The Benefit-in-Kind (BiK) rate for EVs remains highly favourable, with rates set at 2% for 2024/25. This low BiK rate offers significant tax savings for business car drivers, potentially saving up to £1,000 per year compared to conventional cars. Additionally, new CCT bands have been introduced for plug-in hybrids, which favour vehicles with longer electric-only ranges and lower emissions, further benefiting those who frequently undertake longer journeys.

From the 1st of April 2025, EVs in the UK will no longer be exempt from VED. New EVs will pay £10 in the first year and then £195 annually. EVs registered between 2017 and 2025 will be charged the £195 standard rate, while older EVs registered between 2001 and 2017 will pay £20 annually. New EVs costing over £40,000 will incur an extra supplement for five years. These changes ensure EV owners contribute to road maintenance alongside other vehicle owners.

2. Daily congestion charges and free parking around city centres for EVs

For example, London has introduced cheaper tariffs to park around the city if you drive an EV. Some London boroughs even offer free parking.

For more information on tax incentives for EVs see

3. Significant cost savings compared to ICEVs

EVs offer significant cost savings in running expenses compared to internal combustion engine vehicles (ICEVs). The average cost to drive an EV is approximately 8p per mile, whilst ICEVs typically cost around 40p per mile. This substantial difference highlights the financial benefits of operating EVs, especially for fleet owners and high-mileage drivers.

Trends & Future Proofing

As with any trend, no business wants to get left behind – EV’s are here to stay. With major developments and funding being directed towards renewable energy and transportation, staying ahead of the curve by transitioning to an EV fleet and installing EV chargers on-site will save time, energy, and money in the future.

There also is a growing interest in technological trends. Battery management and developments are increasing including the Vehicle to Grid (V2G). V2G harnesses and stores energy provided from other renewable sources such as solar or wind, where storage is an issue, in EVs. It doesn’t impact your daily charging, is a similar cost to installing a fast charger and can generate a saving equivalent to the cost of driving 9,000 miles (Source)